STATOIL

In 2014 Statoil got ranked no.1 on Global 100 Index of the world’s most sustainable energy companies.(Source: Corporate Knights, 2014.) But how can a company, that is riding on fuel that might run out within the next generation, be sustainable? And what are their plans to keep Norway powered? This will be enlightened in the following section.

As the state hold oil company Statoil has a lot of responsibility regarding the Norwegian economy. Which means that when the oil runs out, they will leave a big hole in the economy. To become sustainable, they need to develop a power source that doesn't depend on limited fuel storage. Norway is a country of big rivers, mountains and coast, and its climate consists of lots of rain, wind, snow, and sun (The north part of Norway experiences sun, up to 24 hours a day in the summer season).

Every year Statoil publishes a report, on their sustainable progresses. Download the pdf, to read the full report from 2015:

The report describes Statoil's visions for the future, looking at topics like: climate changes, renewables, development in the energy sector, worker conditions, safety and communities. Relevant for this documentary is their take on the developments in the energy sector. How are they planning to become more sustainable? Download the report above to look into the other topics.

​The visions from the report: To stay competitive at all times To transform the oil and gas industry To provide energy for a low carbon future

Safety and sustainability ambitions from the report:Innovative on safe and secure operationsBe the most carbon efficient oil and gas producer​Create local value for communities

​According to the report the future is predicted to be low carbon. That is why Statoil wants to be the most carbon efficient oil and gas producer. In addition, to build a new energy business focusing on opportunities from the transition to a low carbon world. Reducing carbon emissions and exploring new low carbon business opportunities will ensure the longterm viability of a position as a leading energy provider.

Within renewables, the focus is on strengthening their technology position in floating offshore wind power. Statoil has been actively involved in offshore wind projects for more than ten years. They are looking to develop profitable offshore wind projects in selected markets, where the political support for renewables is present. Over the past few years, the market has become more mature, adopting an auctioning principle for awarding contracts has become a common approach. Developers must compete by providing plans for renewable energy at the lowest cost. This approach pushes the industry to further reduce costs and subsequently reduce the need for financial support from the Government. Statoil is working to increase competitiveness cost.

In the interview below with Erik Haaland will give a closer description of Statoil's takes on the matter.

INTERVIEW WITH ERIK HAALAND

Erik Haaland is the media contact from Statoil's international department of development, production and exploration. We presented him with a series of questions on the oil industry and specifically Statoil. Any future plans, their take on green energy, role in preventing global warming and handling the oil crisis. Read the complete response below.

For Statoil it is important to remain a robust business also for the future. We are therefore focusing on reducing costs and increasing efficiency in our oil and gas business. At the same time, we have been increasing our investments in renewable energy.

,,We support the Paris agreement and the goal of reducing temperature increase to well below 2 degrees. It is important for all of us that we reduce our CO2 emissions and Statoil is working hard to do its part. Being part of the EU ETS emissions trading scheme, we are part of the EU efforts to reduce CO2 emissions by 40% by 2030. As recently as this year the Norwegian oil industry committed to reduce emissions by 2 million tonnes from 2020 to 2030, and that is in addition to the 1,5 million tonnes it has committed to reduce from 2008 to 2020. There are also separate efforts ongoing in the company to reduce our footprint. As a large contributer to CO2 emissions, we have an important role in also contributing to solutions. For Statoil it is important to remain a robust business also for the future. We are therefore focusing on reducing cost and increasing efficiency in our oil and gas business. At the same time, we have been increasing our investments in renewable energy. Over the last few years we have committed around $4 billion US dollars to renewable energy projects. If this part of our company was split out as a separate company it would be among the 15 largest on the Oslo Stock Exchange. These investments have so far mainly been offshore wind projects in the UK and Germany, but increasingly we are also looking at other options such as solar or geothermal energy. These are investments we make because they are profitable and we have an ambition to grow within this area. We welcome all renewable energy and we want to invest in more renewable projects. These projects, though, have to be profitable. What we see now is that there isn’t a lack of capital available out in the world, but a lack of projects to invest in. The competition is fierce, and cost are coming down rapidly. We are working hard to reduce our own costs and implement new technology that will allow us to be competitive."

​- Erik Haaland, Statoil

We welcome all renewable energy. And we want to invest in more renewable projects.​These projects, though, have to be profitable.

,,Over the last two years the world has seen a significant decrease in the oil price, from over $100 dollar in 2014 to around $50 today. In addition, the industry had seen a large increase in the cost of developing new resources. Already in 2013 Statoil started the STEP (Statoil Technical Efficiency Programme) as well as other initiatives to increase efficiency and decrease the cost. This was done to ensure that Statoil would be able to run a profitable business even with a lower oil price. So far this work has yielded good results and in many projects the cost has been reduced by up to 40%.It's worth noting that still the demand for oil and gas is increasing, the situation is that oil production increased faster than the demand and this led to a decrease in the oil price. The demand is still high and there are indications that the market is starting to balance. Over time the demand will decrease, but how much and when is still uncertain.The transition from a fossil fuel based energy market to a market where renewables contribute the majority of energy will take time. How long is uncertain, and for decades to come, oil and gas will still play an important role. It’s also important to note that oil is an important part of many products we use today, such as plastics, so it is not only a discussion about power generation and transport.Statoil has an ambition to be competitive also in a low carbon future. It’s not a question of oil and gas or renewables, but for us both are important. We will transition to a world where fossil fuels will be less in demand, but for the next decades there will still be a need for oil and gas. It is important then that this oil and gas has a low carbon footprint and low cost. That is why we are still exploring for new resources – to replace the resources that are not competitive either on cost or carbon. There is no silver bullet. A combination of industry efforts, clear policies, predictable regulation and new technology will all play a role in taking us into the low carbon future. We are ready to do our part."

​- Erik Haaland, Statoil

A combination of industry efforts, clear policies, predictable regulation and new technology will all play a role in taking us into the low carbon future. We are ready to do our part.